State proposes to slash 2024/25 budget by further Sh36 billion
If approved by the house, the total budget for the year will headline at Sh3.84 trillion, from the previous mark of Sh3.88 trillion contained in the Appropriation Bill No. 1.
The budget and appropriation committee has proposed to slash the expenditure for the Financial Year 2024/25 by a further Sh36 billion in the Supplementary Appropriation Bill (No.2) submitted in Parliament on Monday.
If approved by the house, the total budget for the year will headline at Sh3.84 trillion, from the previous mark of Sh3.88 trillion contained in the Appropriation Bill No. 1.
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Compared to the original estimates of Sh3.99 trillion, this is now a Sh147.7 billion cut.
The back-to-back budget cuts are a result of the Sh346 billion revenue shortfall in the current fiscal year that is a result of the withdrawal of the 2024 Finance Bill.
Additionally, the recurrent budget cuts now amount to Sh39.266 billion, pushing down the total recurrent expenditure to Sh2.802 trillion from the original approved Sh2.841 trillion.
On the other hand, development spending cuts now amount to Sh108.48 billion, narrowing down the development expenditure to Sh593.037 billion, from the original estimate of Sh701.5 billion.
Ministerial A-i-A projections have been revised upward from Sh48.689 billion to Sh474.665 billion. This is from the original estimates of Sh425.976 billion.
Ministerial AiA is revenues collected by various government ministries, departments, and agencies when discharging services and spent at source after appropriation by the lawmakers.
Notably, the total revenue has now been projected at Sh3.106 trillion, an upward projection from the Sh3.057 trillion that the National Treasury had projected in this second appropriation.
Compared to the original estimates, the current revenue projection is a Sh237 billion downscale.
The originally approved projection was Sh3.343 trillion.
The Supplementary Appropriation Bill 2 also unveils that the deficit (inclusive of grants) will now stand at Sh686.33 billion, a Sh89.3 billion increase from the original estimate of Sh597 billion.
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